Why you should commence your Workington lease extension

Top reasons for lease extension now:

Increase your lease and increase your Workington property value

The market value of a leasehold property in Workington is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the 80 year mark. Statute enables Workington qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Workington property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.

Lending institutions may not lend on a short lease

Most mortgage lenders will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will no doubt find it difficult to obtain a mortgage and this will result in your Workington property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Workington lease extensions?

Using our service will provide you enhanced control over the value of your Workington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Workington Lease Extension Case Summaries:

Jamie, Workington, Cumbria

18 months ago Jamie, started to get close to the 80-year threshold with the lease on his garden apartment in Workington. In buying his flat two decades ago, the lease term was of no importance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Jamie arranged for a lease extension just in the nick of time in April. Jamie and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had fallen lower than eighty years, the price would have increased by at least £1,075.

Workington case:

Last year we were contacted by Mr and Mrs. R Ramírez , who bought a garden flat in Workington in May 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Workington with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 collected per annum. The lease finished on 17 April 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.

Workington case:

Mr and Mrs. W Petit took over the lease of a first floor flat in Workington in July 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative flats in Workington with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed in 2091. Taking into account 65 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.